.jpg)
Apollo Global Management Inc (NYSE: APO) is said to be finalizing a deal to take Arconic Corporation (NYSE: ARNC) private in a transaction valued at approximately $3 billion. The deal would value Arconic at $30 per share, and the announcement is expected to be made when Arconic reports its results on Thursday, pending successful negotiations.
Arconic Corporation, which was separated from Alcoa Corp (NYSE: AA) in 2016, carries a significant debt load of over $1.5 billion. In February, Apollo submitted a bid for Arconic, and its advisers sought out other potential acquirers.
Apollo participated in the sale process alongside hedge-fund investor Irenic Capital Management, which was co-founded by Adam Katz, a former employee of Elliott Investment Management. Katz led a proxy fight by Elliott in 2017 that resulted in the resignation of Arconic's then-chief executive and a shake-up on the company's board. In 2018, The Wall Street Journal reported that Apollo had expressed interest in acquiring Arconic.
Apollo was previously close to acquiring Arconic for just over $10 billion, but Arconic instead split into two independent, publicly traded businesses in 2020.
Arconic's shares were up 27.50% at $28.76 during premarket trading on Thursday. Taking Arconic private would allow Apollo to restructure the company without the scrutiny of public investors. Additionally, it would provide Arconic with the resources and support needed to address its debt issues and continue investing in growth opportunities. The transaction would also provide an opportunity for Apollo to leverage its expertise in private equity to drive value for its investors.
Overall, the potential acquisition of Arconic by Apollo is a significant development in the industrial sector, and investors will be eagerly awaiting the outcome of negotiations between the two firms.
Social Plugin